Indigo Sells Interest in Kobo Ebook Reader to Rakuten, Inc.
Posted on November 9, 2011
Canadian bookstore chain Indigo Books & Music, Inc. announced that it will sell its majority share in the Kobo ebook reader to Internet service company Rakuten, Inc. Rakuten will purchase all outstanding shares of Kobo, Inc. for $315 million (U.S.) Kobo will remain a stand-alone operation located in Toronto. Indigo said in a statement:
Indigo founded Kobo and spun it off in 2009 as an independent player in the global eReading market. Both Indigo and Kobo believe that Rakuten is the right global partner for Kobo to continue to grow the company to its full potential. With over 50 million customers, and a global mandate, Rakuten's e-commerce strength and broad experience will offer the support and expertise to enable Kobo to further expand its reach and solidify its position as a global leader in eReading.The sale is expected to close in early 2012, after obtaining approval under the Investment Canada Act."We are truly proud of the success that Kobo and Indigo have achieved. From start up, only 24 months ago, to becoming a strong global player with a unique reading experience and one of the largest multi-language eReading catalogues in the world, Kobo is now among the world leaders in the emerging eReading industry," said Heather Reisman, CEO of Indigo and Chair of Kobo. "Rakuten will allow Kobo to meet the demands of competing with the very best players in the world. Notwithstanding the sale, Indigo will maintain a very strong relationship with Kobo, supporting the products and the services both in store and online and directly benefiting from the growth of the Canadian eReading market. The success of KOBO confirms that Indigo is a great brand and a strong platform on which we can continue to innovate and grow."
